NCA

Please Chris, i am confused about this questions from Kaplan kit.

Increasingly the IASB is requiring or allowing current cost to be used in many areas of financial reporting .
Drexler acquired an item of plant on the 1 October 20*4 at a cost of $500,000. It has an expected useful life of 5 years ( straight line depr) and estimated residual value of 10% of its historical cost or current cost as appropriate. As at 30 sept. 20*4, the manufacturer of the plant still make the same item of plant and its current costs is $600,000.

What is the correct CV to be shown in the SFP of Drexler as at 30 sept. 20*4 under historical and current cost?

I understand under the Historical cost we have 450 (500 * 90%)/5yrs = $90 p.a depr
after 2 yrs CV we be $320 ( 500 – 2*90).

Under current cost , since it was stated that after 2 years ie 30 sept. 20*4, the current cost was $600,000, is this not supposed to be the CV reported until end of period 30 sept 20*6? but the question said what will be the CV as at 30 sept.20*4 under current cost.

Kaplan got CV $320 and $384 ( 600 – 2 * 108). Why do Kaplan have to depreciate the asset for 2 years from the beginning of period which 30 September 20*4? I taught 2 years should have been 20*6?

Please, assist on this.